German Carmakers Agree to Update Software in 5.3 Million Diesels

Germany’s carmakers—BMW, Daimler and Volkswagen—have agreed to update the pollution control software in some 5.3 million of their vehicles already on the road to help lower oxides of nitrogen emissions.

Transport Minister Alexander Dobrindt tells reporters that the three companies also will introduce new incentives to encourage owners to trade in diesel-powered vehicles that are at least 10 years old. He and Environment Minister Barbara Hendricks told the carmakers that the German government will do all it can to avoid diesel bans in German cities, several of which had been announced earlier.

BMW says it will update some 225,000 diesels under the industry initiative. By the end of August the company also will begin offering a €2,000 ($2,400) incentive to owners of diesel vehicles that meet Euro 4 standards or less. Participants must trade up to a BMW i3 electric car, a plug-in hybrid or a Euro 6-standard model BMW or Mini that emits no more than 130 g/km of carbon dioxide.

Daimler says its software update will apply to more than 3 million vehicles in Europe, including about 1 million in Germany. CEO Dieter Zetsche declares that optimizing diesels is a quick and effective way to reduce carbon dioxide emissions pending greater sales gains by all-electric cars. Yesterday the companies estimated the software fix would reduce NOx emission by as much as 25%.

VW did not immediately reveal details about its plan to participate in the software update program. VW’s admission in 2015 that it illegally rigged 11 million of its diesels to evade NOx emission standards triggered a global review by regulators and governments of diesel emissions and plans to ban diesel usage in several city centers.